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Past Exam for ECON 2006 - Principles of Economics at Virginia Tech (VT)

Exam Information

Material Type:Exam 3
Professor:Staff
Class:ECON 2006 - Principles of Economics
Subject:Economics
University:Virginia Polytechnic Institute And State University
Term:Spring 2006
Keywords:
  • Token Money
  • Provided That
  • Requirement
  • Interest Rate
  • Following Events
  • Reserve Requirement
  • Required Reserves
  • Aggregate Income
  • Market Interest Rate
  • Association
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Sample Document Text

ECON 2006, 9AM SECTION EXAM #3 Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best complete s the statement or answers the question. 1) Suppose there is an increase in the money supply. This increase in the money supply will cause A) an excess demand for money and an increase in the interest rate. B) a reduction in the interest rate and a rightward shift of the money demand curve. C) an increase in the interest rate and a leftward shift of the money demand curve. D) a reduction in the interest rate and a movement along the money demand curve. E) None of the above 1) Refer to the information provided in Figure 11.5 below to answer the questions that follow. Figure 11.5 2) Refer to Figure 11.5. The money supply curve will shift from M s 0 to M s 1 if A) the Fed increases the reserve requirement. B) the Fed sells U.S. government securities in the open market. C) the equilibrium level of output increases. D) the Fed decreases the discount rate. ...

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